RSI indicator one of the easiest and most essential in Trading.
What is it?
RSI (Relative Strength Index) or Relative Strength Index is basically an indicator that, through a formula, does not indicate whether or not the asset is overbought or oversold.
It calculates it using the following mathematical formula: RSI = 100 – 100/(1+(average of bullish closes/average of bearish closes))
Graphic representation:
The RSI represents this formula, with a line that will move through a numerical range, where 100 will be the maximum overbought and 0 the maximum oversold.